Stock Exchange: Greek bonds and shares at sell-off rates

The tsunami of international unrest caused by the change in the monetary policy of the European Central Bank and the unprecedented levels of inflation have reached Athens Avenue, with Greek stocks and Greek bonds currently receiving a strong sell-off.

In particular, the General Index closed with a fall of 2.72% to 862.55 points, while it moved between 879.17 points (-0.84%) and 859.69 points (-3.04%). The turnover amounted to 83.56 million euros and the volume to 31.88 million units, while 3.27 million units were traded through pre-agreed transactions.

The index of high capitalization closed with a fall of 2.89%, at 2,078.74 points, while at -1.97% Mid Cap completed the trading at 1,359.78 points. The banking index closed with losses of 3.59% at 567.37 points.

On a weekly basis, the General Index closed with a fall of 3.82%, while the FTSE 25 fell by 4.46%. The banking index closed with losses of 8.12%.

The fall of the market was in line today with the trend of foreign stock exchanges, which are experiencing their own sell-off. In Athens Avenue, however, there were no significant index differences that in the recent past acted as a safety net in the decline of the key index.

At the same time, the fall in government bonds and the rise in the yield of the decade to the level of 4.3% did not go unnoticed by the market, as it identifies the risk premium, acting as an additional carrier of pressure on valuations. Thus, Greek assets re-enter the “category” of risky, after the European Central Bank decided that there is no reason to continue a program that supports the weak countries of the Eurozone.

The tension added risk, the sellers took advantage

The Stock Exchange was under pressure last week, amid rising geopolitical risk and pessimistic messages from the inflation front, says M. Hatzidakis of Beta Securities. Despite the satisfactory performance of GDP growth in the first quarter (+ 7%), the market ignored the growth data of the economy under the weight of the latest data on inflation in May (11.3%), the highest monthly growth measurement since 1995.

Growth rates are building every month and a new high with the energy situation indicating that de-escalation will inevitably come in September when prices will find last year’s highs. The economic climate was aggravated by the rhetoric of Turkey, which on a daily basis now leaves peaks and implications for Greek domination in the Aegean islands that create anything but complacency.

Technical image

Technically, the downward escape of the General Index was accompanied by a majestic gap between 879-885 points, a level that now marks the main resistance. Exceeding 900 points was an extremely ambitious venture with the low volumes that occurred from the beginning of the month and the fall that followed activated all the technical sales signals from the mobile instruments and the MACD.

As of Friday morning, the General Index is on a downward market again after the break-up of the 200-day moving average. A reference point for buyers now is the 850 points which is the last bastion before the General Index tries to test this year’s lows in March, a little lower than the 800 points.

At the moment the trend is tilted in favor of sellers, turnovers showed intensity in declining days and the spread of losses was almost universal. If at this stage there is no new formation of trend halt (accumulation) or reduction of trading intensity, the prevailing scenario will put 800 points as the main goal in the direction of the General Index in the near future, concludes Mr. Hatzidakis.

On the board

On the board now, Mytilineos closed with a fall of 5.19%, with Alpha Bank and PPC following with -4.46% and -4% respectively. Over 3% was the drop in Jumbo, Quest, Piraeus, Terna Energy, GEK Terna, Hellenic Petroleum, Eurobank, Viohalko and Ethniki.

The fall in EYDAP, Coca Cola, OTE, IPTO and ELHA exceeded 2%, while that of Motor Oil, Aegean and PPA by 1%. OPAP, Lambda, Titan and Ellactor closed slightly lower, while Sarantis closed with gains of 1.80%.